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Anti-Money Laundering
Guidelines
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| In view of the increased concerns regarding
money laundering activities and to prevent AMCs from being misused for
such activities, Reserve bank of India has formulate suitable policies and
procedures in this regard. To enable AMCs to put in place the policy
framework and systems for prevention of money laundering while undertaking
money changing transactions, the Reserve Bank has brought out detailed
Anti-Money Laundering (AML) guidelines. |
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| The purpose of
prescribing Anti-Money Laundering Guidelines is to prevent the system of
Authorised Money Changers (AMCs) engaged in the purchase and / or sale of
foreign currency notes/Travelers cheques from being used for money
laundering. Therefore, Anti-Money Laundering (AML) measures should include
a) Identif (ication of Customer according to “Know Your Customer” norms, b)
Recognition, handling and disclosure of suspicious transactions, c)
Appointment of Money Laundering Reporting Officer (MLRO), d) Staff
Training, e) Maintenance of records, f) Audit of
transactions. |
| The
following are broad guidelines to enable AMCs to formulate and put in
place a proper policy framework for AML measures. Know Your Customer (KYC)
– Identif (ication of Customers All transactions should be undertaken only
after proper identif (ication of the customer. Photocopies of proof of
identif (ication should invariably be retained by the AMC after verif (ying
the document in original. Full details of name and address as well as the
details of the identity document provided should also be kept on record.
if ( a transaction is being undertaken on behalf of another person,
identif (ication evidence of all the persons concerned should be obtained
and kept on record. |
| Purchase |
Purchase of Foreign Exchange
a) For encashment of foreign currency notes and/or
Travelers Cheques upto USD 500 or its equivalent, production of passport
need not be insisted upon and any other suitable document of
identif (ication like ration card, driving licence etc. can also be
accepted.
b) For verif (ication of the identity of
customer for encashment in excess of USD 500 or its equivalent, a photo
identity document such as passport, driving licence, PAN Card, voter
identity card issued by the Election Commission, etc. should be obtained
c) $_GETs for payment of sale proceeds in cash may
be acceded to the extent of USD 1000 or its equivalent per transaction.
All encashment within one month may be treated as single transaction for
the purpose. In all other cases AMCs should make payment by way of
"Account Payee" cheque / demand draft only.
d) Where
the amount of forex tendered for encashment by a non-resident or a person
returning from abroad exceeds the limits prescribed for Currency
Declaration Form (CDF), the AMC should invariably insist for production of
declaration in CDF. |
| Sales |
| In all cases of sale of foreign exchange,
irrespective of the amount involved, for identif (ication purpose the
passport of the customer should be insisted upon. The sale of forex should
be made only on personal application and identif (ication. Payment in excess
of Rs. 50,000/- towards sale of foreign exchange should be received only
by account payee cheque / demand draft. All purchases by a person within
one month may be treated as single transaction for the purpose. Encashment
Certif (icate, wherever required, should also be insisted upon.
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| For more detailed information you can visit
RBI Site at www.RBI.gov.in |
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